Hon Bill English
Minister of Finance

28 May 2009
Media Statement

Credit rating news reflects credible Budget

Encouraging news today from two credit ratings agencies reflects the Budget’s credible and balanced approach to helping New Zealanders through the recession, Finance Minister Bill English said.

Standard and Poor’s has removed the negative outlook from New Zealand’s AA+ foreign currency rating, while Moody’s Investors Service said New Zealand’s Aaa rating, which is on stable outlook, was not immediately affected by the projected debt path.

“This is a positive reaction that will benefit New Zealand households, businesses and the economy as a whole,” Mr English says.

“It acknowledges that the Budget strikes the right balance between supporting New Zealanders through the recession in the short-term, and setting in place a credible fiscal and economic plan for the medium to long-term.”

Budget 2009 delivers on both those scores – but more importantly it takes the first steps down the road to recovery.

“There is still a lot of work to be done to lift our economic performance so that we emerge from the recession stronger than we went into it – and so New Zealand begins closing the income gap with its trading partners,” Mr English says.

“We will do this through improving our public services and helping New Zealanders through the recession, lifting productivity and raising New Zealand’s international competitiveness, and taking steps to keep government debt under control.”

ENDS

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